• Sale/title deed of first buyer is missing

Dear Sir,

I had purchased the resale flat from the first buyer on fully cash payment  in 2008 in Ahmedabad.The Flat was transfer into my name in sub registrar office by executing sale deed from 1st buyer to me.  Due to the less knowledge I did not verified the documents properly. It is now observed that the original sale deed and agreement from builder to the first owner is not available with me neither in original nor Xerox copy. Now  I want to sale the flat to third buyer. What will be the legal complication will arise out of this. Whether the third buyer be able to get the loan in absence of title deed/sale deed. What I should do and what is alternate option is available with me so that the property could be sold out smoothly and no difficulties are to be faced by prospective buyer.
Asked 3 years ago in Property Law from Ahmedabad, Gujarat
Hi, you have to apply certified copy sale deed before the sub-registrar so you can get the certified copy of sale deed.
2. You  have to give paper publication in two leading news paper for lost of documents and so also lodge police complaint.
Pradeep Bharathipura
Advocate, Bangalore
4551 Answers
203 Consultations

4.5 on 5.0

First of all you should lodge a police complaint thereby mentioning about the loss of documents.Further you can apply for certified copy of sale deed from the sub registrar office.
Sudershani Ray
Advocate, New Delhi
192 Answers
42 Consultations

4.6 on 5.0

1. You failed to carry out the due diligence, but the prospective buyer may not.

2. Execution of sale deed in your favour by the previous owner does not give you the title if the title of the seller was not good. You should have verified the chain of ownership i.e the conveyance deed in favour of the first buyer before purchasing the property from him. The title of the property forms the foundation of proprietary rights. The title of the seller must be clear and free from any encumbrance. 

3. The bank will carry out its due diligence through its lawyers before deciding the application for loan. If there is any lacuna in the antecedent chain of ownership such as the conveyance deed is not executed in favour of the original purchaser or the building has been constructed in violation of the sanctioned plans, the bank will refuse to grant loan.

4. A search of the records at the sub-registrar’s office may be carried out for finding out the documents that relate to the antecedent chain of ownership.The report will show the recorded owner of title of the property and changes in the title of the property. 

5. If the antecedent chain of ownership is right the bank will have no qualms in advancing the house loan subject to other factors.
Ashish Davessar
Advocate, Jaipur
22977 Answers
634 Consultations

5.0 on 5.0

1) you dont have clear and marketable title to the flat . 

2) no bank will sanction loan  for purchase of flat . 

3) the reason being original chain of title is missing . 

4) you should ask the seller to hand over original documents of title of having purchased flat from builder . 

5) if said documents are lost has FIR been registered .?  has public notice been issued .? has certified copy of agreement between builder and first buyer been obtained from sub registrar office
Ajay Sethi
Advocate, Mumbai
45520 Answers
2676 Consultations

5.0 on 5.0

Read your sale deed carefully. The details of prior deed are mention in your sale deed .So the date and number can get from it and you should apply for certified copy of the document from Sub registrar office. 

Next step

Give paper publication in leading news paper about the details of lost documents mentioned that if any one get the document may be return or any one has claims in the property it will also informed with in prescribed period.
Kept the published news paper and certified copy of the document can used for future purpose. 
A police complaint regarding the loss of documents is good
Ajay N S
Advocate, Ernakulam
2767 Answers
47 Consultations

5.0 on 5.0

1. You were required to collect the original Title Deed of the 1st buyer. The Agreement for sale is not required,

2. Since you have not ciollected the said original Title Deed it may so happen that the 1st buyer has deposited it with some Bank and availed loan by mortgagng the said flat,

3. For creatuing mortgage of a property, its original Title Deed is required to be deposited with the lending Bank,

4. You run a high risk now,

5. Try to collect it now,

6. It may so happen that some Bank may issue possession notice u/s13(4) of SARFAESI Act,2002 to take possession of the mortgaed flat(if mortgaged) to sell it to recover the outstanding amount of the loan account against which the said flat was mortgaged.
Krishna Kishore Ganguly
Advocate, Kolkata
18493 Answers
448 Consultations

5.0 on 5.0

Ask a Lawyer

Get legal answers from top-rated lawyers in 1 hour. It's quick, easy, and anonymous!
  Ask a lawyer